Shoppers Stop Limited (SHOPERSTOP) AI Stock Analysis

• Market Cap: ₹33.44B
• Dividend Yield: N/A
• Average Volume (3M): 13.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 8.80%
• EPS Growth: 9.81%
• Country: IN
• Employees: 6,327
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.55
• Shares Outstanding: 110,117,330
• 10 Day Avg. Volume: 2,741
• 30 Day Avg. Volume: 13,952
• PEG Ratio: -6.29
• Price to Book (P/B): 18.31
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 16.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): ₹47.91B

• Rating: 59 Neutral
• Price Target: ₹331.00 ▼(-14.81% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is mainly supported by improving operational performance and strong cash flow, but is held back by very weak technical trend signals (price below all major moving averages with negative MACD) and limited/weak valuation signals due to a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth Trends

Consistent revenue expansion from 2022–2025 and a recent annual revenue base of 46,276 million indicate sustained market demand and larger scale. This trend supports fixed-cost absorption, funds reinvestment in store and digital capabilities, and underpins durable top-line resilience over the next 2–6 months.

Margin Improvement

Rising gross and EBIT margins reflect improved sourcing, pricing discipline, and operating efficiency. Structural margin gains create lasting cash flow upside, enabling reinvestment into merchandising and omni-channel execution and providing runway for profit recovery even if macro conditions soften.

Cash Generation

Sustained positive operating cash flow and strong free cash flow relative to net income indicate real cash-generation capacity. This durable cash flow supports debt servicing, inventory funding and strategic investments without relying on external capital, improving financial flexibility over coming quarters.

Negative Factors

High Leverage

A high debt-to-equity ratio denotes meaningful leverage that increases interest and refinancing risk. Persistently elevated leverage constrains strategic choices, raises sensitivity to margin or revenue dips, and limits the company’s ability to invest aggressively or withstand cyclical retail pressures over the medium term.

Very Low Net Margin

A near-zero net margin despite revenue growth signals limited profitability after operating costs, interest and taxes. Low net returns reduce retained earnings and weaken the capacity to build equity, making the business vulnerable to input cost shocks and restricting long-term return generation for shareholders.

Earnings Volatility

Sharp negative EPS growth reflects earnings volatility and prior profit pressures. Persistent swings in EPS undermine planning, raise refinancing and compensation risks, and make it harder to steadily improve returns on equity or steadily fund growth initiatives without extra capital or margin recovery.

Shoppers Stop Limited Business Overview & Revenue Model

Company Description

Shoppers Stop Limited engages in the retail of various household and consumer products through retail and departmental stores in India. The company's Shoppers Stop stores provide apparels for men, women, and kids; accessories, fragrances, cosmetics, bags and wallets, grooming, watches, sunglasses and frames, jewelry, and footwear. Its HomeStop stores offer kitchen and dining products, décor products, home furnishing products, storage and organization products, smart home products and appliances, bath accessories, and bedding products. The company also operates crossword bookstores, which provide books and other allied products; and beauty stores that offer make up, skincare, bath and body, nails, haircare, and personal hygiene products, as well as tools and accessories. In addition, it engages in supervising distribution and logistics operations businesses; and retailing of various consumer products through online channels, such as shoppersstop.com and mobile applications. The company operates 88 departmental stores, 11 HomeStop stores, 136 beauty stores, and 24 airport stores. Shoppers Stop Limited was founded in 1991 and is based in Mumbai, India.

How the Company Makes Money

Shoppers Stop generates revenue primarily through the sale of merchandise in its retail stores and online platform. The company has several key revenue streams, including the sale of fashion and lifestyle products, cosmetics, and home goods. Additionally, Shoppers Stop benefits from its private label brands, which typically offer higher margins compared to third-party brands. The company also engages in promotional activities and partnerships with various brands, which can include co-branded products and exclusive launches, further driving sales. The Shoppers Stop First Citizen loyalty program contributes to customer retention and repeat purchases, enhancing overall revenue. Seasonal sales and clearance events also play a significant role in boosting sales during peak shopping periods.

Shoppers Stop Limited Financial Statement Overview

Summary

Strong revenue growth (2022–2025) and improving gross/EBIT margins, supported by positive operating cash flow and solid free cash flow. Offsetting factors are very low net profit margin (0.24% in 2025) and high leverage indicated by a high debt-to-equity ratio.

Income Statement

The company has shown significant revenue growth from 2022 to 2025 with a recent annual revenue of 46,276 million. Gross profit margin improved substantially, moving from 39.6% in 2022 to 41.0% in 2025, indicating better cost management. Net profit margin in 2025 was low at 0.24%, reflecting challenges in achieving profitability despite revenue growth. The EBIT margin increased notably, suggesting improvements in operational efficiency.

Balance Sheet

Shoppers Stop's debt-to-equity ratio is high, reflecting substantial leverage, which could pose financial risk. The equity ratio improved slightly, indicating some strengthening of the equity position over time. Return on equity remains low, indicating room for improvement in generating profits from shareholders' equity.

Cash Flow

The company has maintained positive operating cash flow, with a strong free cash flow position. The free cash flow to net income ratio is favorable, suggesting efficient cash generation relative to net income. However, the operating cash flow to net income ratio indicates challenges in converting accounting profits to cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.19B	46.28B	43.17B	40.22B	25.19B	17.49B
Gross Profit	17.11B	19.00B	8.20B	8.52B	2.88B	5.67B
EBITDA	7.97B	7.08B	7.66B	7.50B	4.64B	2.68B
Net Income	178.90M	108.90M	772.50M	1.16B	-470.00M	-2.67B
Balance Sheet
Total Assets	0.00	60.95B	52.94B	46.03B	37.83B	35.16B
Cash, Cash Equivalents and Short-Term Investments	139.90M	140.20M	166.30M	793.70M	1.78B	1.70B
Total Debt	0.00	33.14B	27.85B	23.75B	21.15B	21.06B
Total Liabilities	-3.21B	57.73B	49.93B	43.97B	37.07B	33.96B
Stockholders Equity	3.21B	3.21B	3.01B	2.06B	759.30M	1.20B
Cash Flow
Free Cash Flow	0.00	3.66B	3.85B	3.97B	2.75B	-866.60M
Operating Cash Flow	0.00	5.49B	5.61B	5.43B	3.83B	-29.50M
Investing Cash Flow	0.00	-1.69B	-1.11B	-290.80M	-1.02B	-235.50M
Financing Cash Flow	0.00	-4.09B	-4.79B	-5.37B	-2.70B	1.67B

Shoppers Stop Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 388.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHOPERSTOP, the sentiment is Negative. The current price of 388.55 is above the 20-day moving average (MA) of 363.20, above the 50-day MA of 374.24, and below the 200-day MA of 473.18, indicating a bearish trend. The MACD of -19.97 indicates Positive momentum. The RSI at 25.08 is Positive, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHOPERSTOP.

Shoppers Stop Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARVIND	69 Neutral	₹90.30B	22.27	―	1.18%	8.84%	41.74%
MAZDA	68 Neutral	₹3.93B	14.67	―	1.64%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VMART	60 Neutral	₹43.76B	33.31	―	―	16.45%	―
SHOPERSTOP	59 Neutral	₹33.44B	-188.30	―	―	8.80%	9.81%
ABFRL	48 Neutral	₹80.21B	-12.43	―	―	-32.83%	31.19%

Shoppers Stop Limited Corporate Events

Shoppers Stop Schedules Q3 & Nine-Month FY26 Earnings Call for January 21

Shoppers Stop Limited has announced that it will host an analyst and investor conference call on 21 January 2026 to discuss its financial performance for the third quarter and nine months ended 31 December 2025. The call, led by Managing Director & CEO Kavindra Mishra and Chief Financial Officer Karunakaran Mohanasundaram, will feature a management presentation on earnings followed by a Q&A session, underscoring the company’s efforts to maintain transparent communication with capital markets and keep stakeholders updated on its operating performance.

Shoppers Stop Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Shoppers Stop Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate, issued by its registrar and share transfer agent KFin Technologies Limited, confirms that details of the company’s securities dematerialised and rematerialised during the period have been duly furnished to all stock exchanges where its shares are listed, underscoring ongoing regulatory compliance in handling its equity securities and providing assurance to investors about the integrity of its share transfer and depository processes.

Shoppers Stop Schedules Investor Meeting with 360 One Asset Management

Shoppers Stop Limited announced a scheduled meeting between its senior management and representatives from 360 One Asset Management Limited on December 9, 2025. The meeting aims to discuss company matters without sharing any unpublished price-sensitive information, reflecting the company’s commitment to transparency and regulatory compliance.